With legislation that would force all Chinese firms listed on US stock exchanges to submit to the same regulatory oversight as American firms, US policymakers are calling China's bluff. Far from confirming fears of a widespread delisting of Chinese firms, the law will likely improve the investment environment.
NEW YORK – After passing unanimously in the US Senate on May 20, 2020, the Holding Foreign Companies Accountable Act is heading for the House of Representatives, and US President Donald Trump is expected to sign it into law. The law requires that all companies listed on US stock exchanges submit to audits reviewable by the US Public Company Accounting Oversight Board (PCAOB), and non-compliant firms can be delisted after three years. This has generated talk that all Chinese firms could disappear from US exchanges.
NEW YORK – After passing unanimously in the US Senate on May 20, 2020, the Holding Foreign Companies Accountable Act is heading for the House of Representatives, and US President Donald Trump is expected to sign it into law. The law requires that all companies listed on US stock exchanges submit to audits reviewable by the US Public Company Accounting Oversight Board (PCAOB), and non-compliant firms can be delisted after three years. This has generated talk that all Chinese firms could disappear from US exchanges.